Shiller: Stocks Finally Undervalued

Yale economist Robert Shiller — best known for his housing market acumen — now says that stocks have dropped below fair value for the first time in 17 years.

Shiller bases his view on a recent update of his 140-year data series for the S&P 500.

His updated data show the rolling 10-year earnings for the S&P 500 have dropped to about 15, slightly below the long-term average, suggesting that over the next couple of decades the S&P could deliver a 6 percent to 7 percent average long term return.

Yale economist Robert Shiller — best known for his housing market acumen — now says that stocks have dropped below fair value for the first time in 17 years.Shiller bases his view on a recent update of his 140-year data series for the S&P 500.His updated data show the...